Development Land and Restrictive Covenants

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Are you looking to purchase a plot of land for development purposes? It is crucial before exchanging contracts to fully review and investigate all aspects of your potential investment.  

The land in question may be subject to restrictive covenants which prevent the building or use envisaged by the development. A restrictive covenant is a promise contained in a deed not to use the land in a particular way for the benefit of other land. These type of covenants run with the land and therefore it is not just the person who entered into the covenant who is bound, but also his/her successors in title.

The type of restrictions that may be revealed through a thorough title investigation include a limit on the number of properties allowed to be built on the plot, restrictions which prohibit a certain type of use or not to carry out any alterations to any existing buildings on the plot without consent from a third party. This is not, however, an exhaustive list.

The adverse effect of restriction covenants is that they can affect the value of the land and may put off potential investors. It can also be time consuming to overcome these obstacles.

It is therefore advisable to seek expert legal advice early on so that you are fully aware of any potential issues, the impact that these can have and how they can be solved.

If you require any further information please call one of our Commercial Property Solicitors on 0800 689 0831 or complete the enquiry form.

Laura Bradley

About Laura Bradley

Laura Bradley is a Solicitor in the Commercial Property department at Forbes Solicitors. Within her blogs Laura deals with all aspects of commercial property including leases (from both landlord and tenant perspective), licences, acquisitions and disposals along with recent updates within the property sector.
This entry was posted in Commercial Property.

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